HomeMy WebLinkAbout12 Local Procurement Policy Agenda Item # 12
TRUCKEE DONNER
WORKSHOP
To: Board of Directors
From: Robert Mescher
Date: March 16, 2011
Subject: Discussion Regarding a Local Procurement Policy
I. WHY THIS MATTER IS BEFORE THE BOARD
The Board requested this workshop to discuss the potential of implementing a local
Procurement policy for the District.
2. HISTORY
The District's purchasing procedures are defined in Chapter 3.08 of the District Code.
Types of procurements are:
• Commodities or equipment
• Service contracts (Public Works and other service contracts)
• Joint purchasing with the State and other public agencies
• Special services
• Consulting services
• Emergencies
Our total annual procurements are about $101000,000.
On January 19, 2011, staff presented a workshop discussing the possibility of a local
Preference procurement policy to encourage utilization of Truckee local businesses.
The following points were discussed:
Eligible Procurements
Types of procurements that could include a local preference component are:
• Commodities or equipment up to $109000
• Public works contracts up to $15,000
• Other service contracts
• Special services
• Consulting services
• Emergencies
These eligible procurements represent about $2,000,000 or 20% of the Di
annual procurements. District's total
Examples of special services relate
to financial
legal, or administrative , economic, accountin engineering,
matters. g,
Examples of consulting services relate to private architectural, landscape architectural
engineering, environmental, land surveying, p ,
firms, where the firms have equal or construction project management'q al competence and professionalqualifications. g nt
Other Agencies
Counties and cities have local ref
businesses, expecting that Preference procurement policies to assist their P g at sales and property tax revenue eir local
term. will increase in the long
Most California counties have a local preference procurement polic • typically Y, ypically 5% of
The Town of Truckee has a local
contribution of local sale Preference policy based on the local business'
s tax.
Our neighboring local agencies do
policy: not have a written local preference ro p curement
Alpine Springs County Water District
North Tahoe Public Utility District
Northstar Community Service District
Placer County Water Authority
Public S
Squaw Valley Service District
Tahoe City Public Utility District
Tahoe Truckee Sanitation Agency
Truckee Fire Protection9 Y District
Truckee Sanitary District
3. NEW INFORMATION
The Board requested staff to dr
consideration. aft a local preference Procurement policy for
The proposed policy is:
"It shall be the policy of the Distri
Provide goods and se ct to encourage local businesses to
rvices to the District in order to maintain a h
local economy and to encourage healthy
services. In order t g efficiency in purchasing goods an
o facilitate this policy, the District d
purchases in accordance with the followingict shall make
guidelines:
Local preference for the purchases
be allowed b rovi of eligible goods and services ma
Y p ding a 5% local preference where th y
contracts with a respective local vendor a purchases or
year does exceed $100 000. or business during any fiscal
Proposals for services, b their
qualifications. A 5° y nature, are evaluated based u o
/° local preference shall be applied p n
component when scoring the proposal.
pp towards the fee
p
In order to qualify for the above local preference, a vendor or business
must either 1 be a
District rate payer in good s
months, or 2) receive District ow g Landing for the past six
power or water at their business location
for the past six months;
paid by a third party.
Eligible procurements are:
• Commodities or equipment up to $1
0,000,
• Public works contracts up to $15,000;
• Other service contracts up to $100
• '000'
Special services up to $100,000;
• Consulting services up to $100 000•
• Emergencies up to $100,000.„ ) , and
The next steps are:
Tonight Provide staff directi
March 25th on on proposed policy
Advertise proposed policy
April 6th Workshop and adopt policy
4. FISCAL IMPACT
There is no direct fiscal associated impact p dated with this workshop.
The District's total annual procurements
$2,000,000 or 20% p rements are about $10,000,000. A of the annual procurements are Proximately
local
preference policy. If the local preference eligible to include a local
local venders; and all eligible p nce policy gave a 5% preference adjustment
ligible procurements went to local d�ustment to
to the District would be $100,000. H firms, then the potential cost
However, the estimated fiscal impact is less
$10,000 per year. s th
an
5. RECOMMENDATION
Review this report and provide comments.
Robert Mescher 1.2 '
Acting Administrative Services Ma chael D. Holley
Hager
General Manager